Market Overview

Cowen Doubles Down On Bullish AMD Stance After Meeting With CTO

Share:
Cowen Doubles Down On Bullish AMD Stance After Meeting With CTO

Cowen hosted Advanced Micro Devices, Inc. (NASDAQ: AMD) Chief Technology Officer Mark Papermaster at its technology, media and telecom conference, and the executive "conveyed a positive tone" on AMD's 7nm product designs.

The Analyst

Cowen's Matthew Ramsay maintains an Outperform rating on AMD with an unchanged $18 price target.

The Thesis

Ramsay's takeaways after the conversation with the CTO included the following: 

  • AMD has successfully completed three separate 7nm product designs, which are believed to be a Rome server, Vega graphics and third-generation Ryzen.
  • AMD's 40-percent-plus gross margin target is a "milestone" and not an ultimate objective as the company ramps higher performance CPUs and GPUs.
  • AMD has an opportunity to gain market share with server, notebook and desktop products.
  • AMD is becoming "more competitive on more equal foundry footing."
  • AMD could have a one-year head start to market against Intel Corporation (NASDAQ: INTC), as it could begin sampling 7nm data center CPUs in the bottom half of 2018 versus Intel's 2019 10nm PC timing.
  • AMD's server sales should ramp in the bottom half of 2018 from the first-generation EPYC platform and the "impressive roster" of cloud and OEM engagements.
  • Expectations for AMD to drive "meaningful" revenue growth as early as the bottom half of 2018 imply the company is likely to see material upside to its 75-cent-per-share EPS target by 2020.

Price Action

AMD shares were trading higher by 3.72 percent at the time of publication Friday. 

Related Links:

Cowen Names 4 Top Semi Picks: AMD, Ambarella, Broadcom, Monolithic Power

5 Reasons Susquehanna Is No Longer Bearish On AMD

Latest Ratings for AMD

DateFirmActionFromTo
Jan 2021Cowen & Co.MaintainsOutperform
Jan 2021BMO CapitalDowngradesMarket PerformUnderperform
Nov 2020Wells FargoUpgradesEqual-WeightOverweight

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

 

Related Articles (AMD)

View Comments and Join the Discussion!

Posted-In: Cowen CPU GPU Mark PapermasterAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
TSLAJP MorganMaintains125.0
INTCTruist SecuritiesMaintains64.0
FBTruist SecuritiesMaintains320.0
GSCitigroupMaintains370.0
AAPLCowen & Co.Maintains153.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com